1. This Order may be cited as the Income Tax (Interest Relief) (Qualifying Lenders) (No. 2) Order 1988.

2. The bodies named in article 3 below are prescribed for the purposes of section 376 of the Income and Corporation Taxes Act 1988 and shall become qualifying lenders with effect from the dates and in respect of the loans specified in the following paragraphs-

(a)with effect from the thirtieth day after the making of this Order, in relation to new loans (that is loans which are made on or after that day);

(b)with effect from the making of this Order, in relation to transferred loans (that is loans transferred from another qualifying lender on or after the making of this Order the interest on which is at the time of transfer relevant loan interest payable by a qualifying borrower);

(c)with effect from the 6th April 1989, in relation to other loans made by the body concerned before the thirtieth day after the making of this Order.

3. The following are the bodies referred to in article 2 above-

• Abbey Life Mortgage Loans Limited

• Abbey National PLC

• Arbuthnot Latham Bank Limited

• BAII London Limited

• Bergen Bank A/S

• Boston Safe Deposit and Trust Company (UK) Limited

• Citicorp Investment Bank Limited

• Equity & Law Home Loans (NO 2) Limited

• Equity & Law Home Loans (NO 3) Limited

• Equity & Law Home Loans (NO 4) Limited

• Equity & Law Home Loans (NO 5) Limited

• Equity & Law Home Loans (NO 6) Limited

• Framework Homeloans Limited

• Gracechurch Mortgage Finance (NO 2) Limited

• Grosvenor Mortgages Limited

• HMC Financing 5 Limited

• HMC Financing 6 Limited

• HMC Financing 7 Limited

• HMC Mortgage Notes 9 PLC

• Home Loans For Scotland Limited

• Mortgage Funding Corporation NO 1 PLC

• Mortgage Funding Corporation NO 2 PLC

• Mortgage Funding Corporation NO 3 PLC

• Mortgage Funding Corporation NO 4 Limited

• North Yorkshire Mortgages Limited

• NPI Mortgages Limited

• Overseas Chinese Banking Corporation Limited

• Professional and Executive Management Services (Midlands) Limited

• Providence Capital Mortgages Services (NO 1) Limited

• Providence Capital Mortgage Services (NO 2) Limited

• Scotiabank (UK) Limited

• SRF Financing 1 PLC

• SRF Financing 2 PLC

• SRF Financing 3 PLC

• SRF Financing 4 PLC

• SRF Mortgage Notes 1 PLC

• SRF Mortgage Notes 2 PLC

• SRF Mortgage Notes 3 PLC

• SRF Mortgage Notes 4 PLC

• SRF Mortgage Notes 5 PLC

• SRF Mortgage Notes 6 PLC

• The Commercial & Residential Mortgage Corporation Limited

• The Sumitomo Trust and Banking Company Limited

• UMC 3 Limited

• UMC 4 Limited

• Union Bank of Finland Ltd.

• Wesleyan Home Loans Limited

4. Article 3 of the Income Tax (Interest Relief) (Qualifying Lenders) Order 1987(2) shall be amended by omitting the words-

"Mortgage Funding No. 2 Limited

Mortgage Funding No. 3 Limited

Mortgage Funding No. 4 Limited

Mortgage Funding No. 5 Limited".

Explanatory Note

(This note is not part of the Order)

By article 2, the bodies named in article 3 are prescribed as qualifying lenders so that interest on qualifying loans made by them may be paid to them under deduction of tax under the tax deduction scheme (introduced by the Finance Act 1982 (c. 39)) from the dates specified in the Order.

By article 4, the Income Tax (Interest Relief) (Qualifying Lenders) Order 1987 is amended by omitting from article 3 thereof"Mortgage Funding No. 2 Limited, Mortgage Funding No. 3 Limited, Mortgage Funding No. 4 Limited and Mortgage Funding No. 5 Limited".

Previous Orders which are in force are S.I. 1983/1907, 1984/1945, 1985/1697, 1986/386, 1440 and 2191, 1987/1224 and 2127 and 1988/781.